Section 37: Procedure for conducting post clearance audit

1 An entity to undergo post clearance audit shall be given -
a a written notice stating the date and time of the audit; and
b a questionnaire setting out the questions to be answered and returned.

2 Any person to be audited shall produce all relevant information, including -
a all documents and records, paper or electronic, maintained in the normal course of business containing information relevant to the customs transactions under examination, such as -
(i) accounting data,
(ii) physical inventory and inventory records,
(iii) records of sales and other transactions,
(iv) recording books,
(v) account records,
(vi) bank transfers, and
b all documents related to import and export transactions maintained in magnetic or data processing files that have a direct or indirect relation to the audit.

3 The Service may, where appropriate, examine the goods and mode of transportation.

4 The person to be audited shall cooperate with the auditors, and where he fails to do so, the auditor shall -
a stop the audit;
b retain all documents and data procured in the course of the audit; and
c make a report of the refusal to cooperate by the person being audited to the Comptroller-General or his representative.

5 Refusal to cooperate by a person undergoing audit under this section shall be liable to a fine of N1,500,000 for each day of such refusal and where the refusal continues for more than seven days, the person may be suspended from all customs transactions.

6 Where an audit discloses an attempt to evade the payment of duties, Customs duties and fees or any criminal activity -
a the audit may be suspended; and
b the matter reported to the Comptroller-General or his representative.

7 The person audited may within seven working days after the conclusion of the audit forward a written explanation on any issue raised in the audit findings to assist in the preparation of the final audit report.